The dollar index briefly hit a Jan. 7 high of 96.30 against a basket of currencies on Tuesday, before closing below that threshold. On Wednesday it rose 0.5% after the Fed statement.
“The statement leaves many questions unanswered, particularly when it comes to the balance sheet liquidation. Not many details were provided,” said Russell Price, chief economist at Ameriprise Financial.
Markets were on a rollercoaster ride this week as a combination of a more hawkish Fed stance and a slowing economy unnerved investors. This generated a broad divestiture of large-cap technology shares and the search for refuge in safe assets such as the dollar.
The euro fell 0.44% to $1.1249, while the Japanese yen weakened 0.62% to 114.57 per dollar.
Monetary policy was a sore spot for the euro as the European Central Bank downplayed prospects for higher rates this year, making it the main catalyst after its roughly 4.5% drop against the dollar in recent years. six months, operators said.
Source From: Ambito
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